COMMITTEE OF THE WHOLE MONDAY, JUNE 22, 2015, AT 1:00 P.M. ABBOTSFORD CITY HALL - ROOM 530 AGENDA
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1 COMMITTEE OF THE WHOLE MONDAY, JUNE 22, 2015, AT 1:00 P.M. ABBOTSFORD CITY HALL - ROOM 530 AGENDA 1. CALL TO ORDER 2. ADOPTION OF MINUTES.1 Minutes of the Committee of the Whole meeting held June 1, 2015 (attached) (p. 2) 3. PRESENTATIONS 4. DELEGATIONS.1 Bernard Abelson P.Eng., M Eng., TOPS, CH2M Hill, regarding the 16 th Avenue Corridor - Powerpoint Presentation 5. BUSINESS OUT OF MINUTES 6. REPORTS.1 Report No. PDS , dated June 5, 2015, from the Director, Community Planning; Director, Development Planning; and the Manager, Bylaw Services, regarding an introduction to the Agricultural Lands Review Project ( ) (attached) (p. 5) - Powerpoint Presentation.2 Report No. COR , dated June 17, 2015, from the Director, Finance/Chief Financial Officer, regarding the Financial Plan Mandate (attached) (p. 8) - Powerpoint Presentation 7. NEW BUSINESS 8. ADJOURNMENT
2 Minutes of the Committee of the Whole meeting of the Council of the City of Abbotsford held June 1, 2015, at 1:00 p.m. in Room 530, Abbotsford City Hall Council Present: Mayor H. Braun (part); and Councillors; L. Barkman; K. Chahal; B. Falk; M. Gill; D. Loewen; P. Ross (part); and R. Siemens (part) Staff Present: Acting City Manager H. Enns; Director, Legislative Services/City Clerk B. Flitton; Acting General Manager, Engineering and Regional Utilities P. Blaker; General Manager, Planning and Development Services S. Bertelsen (part); Fire Chief D. Beer; Director, Communications, Marketing and Strategic Planning K. Treloar (part via teleconference); Director, Development Planning D. Braun; Director, Finance L. Pleadwell (part); Continuous Improvement Coordinator A. Martens (part); Special Events Coordinator - B. Roberts (part); Senior Planner B. Collins; and Senior Planner M. Pryce Media Present: Public Present: ±4 1. CALL TO ORDER The meeting was called to order at 1:00 p.m. 2. ADOPTION OF MINUTES Moved by Councillor Barkman, seconded by Councillor Gill, that the minutes of the Committee of the Whole meeting held May 4, 2015, be adopted. COW DELEGATIONS 4. BUSINESS OUT OF MINUTES 5. REPORTS 5.1 COMMUNICATIONS, MARKETING AND STRATEGIC PLANNING Councillor Siemens joined the meeting at 1:08 p.m. during discussion of the following item..1 Outdoor Special Event Bylaw ( ) The Director, Communications, Marketing & Strategic Planning, Continuous Improvement Coordinator and Special Events Coordinator provided an overview of the proposed Special Events Bylaw and highlighted four key areas, including: events that are Citysponsored; events held in City parks; exemption for School District #34, except for events held outside of regular school operating hours; and the ability for registered societies being able to hold events without permits no longer permitted. They also provided an overview of a draft Recommended Canada Day Committee Chairs and Responsibilities Page 2 of 11
3 Minutes of the Committee of the Whole meeting of the Council of the City of Abbotsford held June , at 1:00 p.m. in Room 530, Abbotsford City Hall Page 2 Matrix in regards to: there is no corporate sponsor for Canada Day; historically started as a small event at Mill Lake and has grown into a larger event with parade and events at Exhibition Park; previous Canada Day Committee under the leadership of former Councillor Lynne Harris; largely a staff driven event now with volunteers; in 2016 key volunteers will no longer be assisting with the event and the City needs to look at planning for the event moving forward in terms of key positions included in the matrix and the need for volunteers Moved by Councillor Falk, seconded by Councillor Chahal, that the verbal report by the Director, Communications, Marketing and Strategic Planning; Continuous Improvement Coordinator; and Special Events Coordinator, along with a PowerPoint presentation and background information, regarding an Outdoor Special Events Bylaw, be received for information. COW Moved by Councillor Barkman, seconded by Councillor Chahal, that the verbal report by the Director, Communications, Marketing and Strategic Planning, regarding an update on Canada Day, and background information, be received for information. COW PLANNING AND DEVELOPMENT SERVICES.1 Administrative and Procedural Bylaw and Policy Updates ( /PDS ) Mayor Braun left the meeting at 2:10 p.m. and Councillor Ross assumed the Chair. Mayor Braun returned to the meeting at 2:12 p.m. and assumed the Chair. Moved by Councillor Loewen, seconded by Councillor Chahal, that Report No. PDS , from the Senior Planner, regarding Administrative and Procedural Bylaw and Policy Updates and PowerPoint presentation, be received for information. COW Page 3 of 11
4 Minutes of the Committee of the Whole meeting of the Council of the City of Abbotsford held June , at 1:00 p.m. in Room 530, Abbotsford City Hall Page 3.2 Zoning Bylaw Housekeeping Amendments (ZB-007/PDS ) Councillor Ross left the meeting at 2:21 p.m. Mayor Braun left the meeting at 2:58 p.m. and Councillor Loewen assumed the Chair. Moved by Councillor Falk, seconded by Councillor Chahal, that Report No. PDS , from the Senior Planner, regarding Housekeeping Update to Zoning Bylaw and PowerPoint Presentation, be received for information. COW NEW BUSINESS 7. ADJOURNMENT Moved by Councillor Barkman, seconded by Councillor Falk, that the June 1, 2015, Committee of the Whole meeting, be adjourned. (3:01 p.m.) Certified Correct: Henry Braun Mayor Bill Flitton Director, Legislative Services/City Clerk Page 4 of 11
5 So '~A ABBOTSFORD Report No. PDS June 5, 2015 File No: COUNCIL REPORT Committee of the Whole To: From: Subject: Mayor and Council Mark Neill, Director, Community Planning Darren Braun, Director, Development Planning Magda Laljee, Manager, Bylaw Services Introduction to the Agricultural Lands Review Project RECOMMENDATION THAT Council receive an Agricultural Lands Review update and authorize staff to proceed with a Request for Proposals for this project. BACKGROUND The agricultural industry is quickly changing and experiencing intensification. Many farmers are looking to add-value to their product to remain competitive by introducing on-farm processing, farm retail and agri-tourism opportunities. This value-added approach increases the industrialization and urbanization of farming, thus blurring the lines between rural and urban land uses. Because of the changes taking place in agriculture it is important for the City to respond. Therefore, staff is proposing an interdepartmental planning process for a project called the Agricultural Lands Review. The purpose of the project is to undertake a critical review of the current agricultural bylaws, policies and regulations for land in the Agricultural Land Reserve (ALR) and establish a framework for on-going bylaw compliance. The City of Abbotsford's Official Community Plan (OCP) update, known as Abbotsforward, will establish a long-term vision to guide where people will live, work and play in the city. At the end of Stage 2, early elements of a vision have been developed through the seven Big Ideas. One of the Big Ideas is to "Enhance Agricultural Integrity". ANALYSIS The Agricultural Lands Review is a comprehensive inter-departmental planning process containing three components; Official Community Plan (OCP), Zoning Bylaw and Bylaw Compliance. In order for agriculture to thrive and function in an orderly way, it is important that the bylaws, policies and regulations, and compliance strategies work in harmony, instead of in silos. As such, this planning process is structured to have each component fit into the broader planning framework with a deliverable of clear and concise policies in the OCP that align with regulations contained in the Zoning Bylaw. This will enable a systematic and strategic approach to bylaw compliance for uses in the ALR. Page 5 of 11
6 Report No. PDS Page 2 of 3 Process The OCP update process is anticipated to a month long process beginning in the fall. The project will be organized into four stages: 1) Background Research, 2) New Directions, 3) Adopt New Rules, and 4) Implementation. 1. Stage 1 will focus on background research that will be consolidated into a report including information on agricultural trends in Abbotsford, inventory of existing conditions and an outline of existing legislation and municipal plans/strategies. The purpose of the background research report is to recognize the current state of agriculture in Abbotsford and better understand the trends taking place. 2. Stage 2 will focus on preparing new directions that will shape and define the OCP policies and Zoning regulations and establish a framework for a bylaw compliance strategy. 3. Stage 3 will focus on preparing the updated OCP policies and Zoning regulations using the findings from Stage 1 and 2 including obtaining necessary approvals from external government agencies and adoption by Council. 4. Stage 4 will implement the on-going bylaw compliance strategy. STRATEGIC DIRECTIONS At the May 11, 2015 Executive meeting, Council received the Stage 2- New Concepts Report and endorsed the seven Big Ideas for Abbotsforward. To "Enhance Agricultural Integrity" staff is recommending an Agricultural Lands Review relating to ALR land that will respond to current agricultural trends and support the long-term integrity of agriculture in Abbotsford. Council's Strategic Plan identifies four cornerstones, one of which is "Organization Alignment". This inter-departmental approach moves the City closer to achieving this cornerstone by aligning the City's long range planning policies with site specific regulations and on-going compliance management strategies. FINANCIAL PLAN IMPLICATION The Financial Plan allocates $170,000 to Planning & Development Services consulting work in $100,000-$125,000 of this fund will be allocated to the Agricultural Lands Review project. \ I.fo/ Lisa Plea dwell Chief Financial Officer Page 6 of 11
7 Report No. PDS Page 3 of 3 SUBSTANTIATION OF RECOMMENDATION The City of Abbotsford's Official Community Plan (OCP) update, known as Abbotsforward, will establish a long-term vision for the city. At the end of Stage 2, early elements of a vision have been developed through the seven Big Ideas. One of the Big Ideas is to "Enhance Agricultural Integrity". To achieve this Big Idea staff is preparing an inter-departmental planning process to review and update bylaws, policies and regulations relating to ALR land that will respond to current agricultural trends and support the long-term integrity of agriculture in Abbotsford. Director, Community Planning Darren Braun Director, Development Planning Page 7 of 11
8 Sa,~A ABBOTSFORD Report No. COR COUNCIL REPORT COMMITEE OF THE WHOLE Date: File No: To: From: Subject: June 17, Mayor and Council Lisa Pleadwell, Director, Finance/Chief Financial Officer Financial Plan Mandate RECOMMENDATION THAT the Financial Plan Mandate, as referenced in Report No. COR , be recommended to Council for approval. SUMMARY OF THE ISSUE The City prepares its financial plan in a 5 year cycle as directed by the community charter. Within the financial plan framework a 4 year rolling budget is developed to correspond with Council's duration in office. The financial plan reflects cost factors or variables that are established based on knowledge known at the time the financial plan was established. Each year key economic cost factors that the financial plan was structured on are updated based on any new knowledge that is present at that time. This report sets out the Financial Plan mandate. BACKGROUND In accordance with the Community Charter, municipalities are required to develop and adopt a 5 year financial plan. In 2014 staff introduced to the Finance Committee the notion of a financial plan framework based on a 4 year rolling multi year budget that would correspond with Council's duration in office and a Municipal Price Index (MPI) which takes into consideration a "basket of goods" that is symbolic to the mix of goods and services purchased in the operation of a City to account for projected inflation that the City's operating budget faces on an annual basis. For each year of the financial plan, the estimated percentage changes for expenditures within the MPI are established based "best" known cost factor information established by the City or information provided by the Conference Board of Canada at the time of development. Each year the MPI is updated from any new or emerging knowledge that may be available at the time the plan is developed that may alter the rate used to establish the MPI from prior years. DISCUSSION The central purpose of the a rolling multi-year Financial Plan and Budget process is to prioritize the allocation of scare resources to City services and to ensure that these resources are used as efficiently and effectively as possible to produce the intended results. Page 8 of 11
9 Report No. COR Page 2 of 4 Municipal Price Index The most widely applied measure of inflation is the Consumer Price Index (CPI) produced through Statistics Canada. A price index measures the change in the costs of purchasing a fixed basket of goods and services in the current period, compared to the based period, typically month over month or year over year. It can be the appropriate metric when calculating the rate of consumer inflation. What Municipalities actual experience with inflation can differ from the CPl. As the CPI contains a different basket of goods than used by the City of Abbotsford, the CPI is not the best tool for the City to use to assess inflationary pressures. The average consumer spends money on food, clothing, housing, insurance and entertainments related goods; on the other side, the municipal government spends money on roads, parks, public safety, etc. Therefore, an alternate measure of inflation called the MPI (Municipal Price Index) is created. While, the CPI represents the purchasing pattern of an average consumer, the MPI reflects the mix of goods and services purchased by the City of Abbotsford. A Municipal Price Index (MPI) takes into consideration a "basket of goods" that is symbolic to the merchandise or supplies consumed in the operation of a City. In order to calculate the MPI, the 2015 Budget was used and budgets with similar inflationary pressures were grouped together to form 18 different categories. Each category was then assigned a weight. The following table shows the expense category and allocated weight for each category: MPI Analysis Categories & Weight- Based on 2015 Budget No. C~ego~ 1 Salaries & Wages 2 Benefits 3 Insurance 4 Electricity 5 Natural gas I Propane 6 Other Utilities (Water/Sewer) 7 Fuel & Oil 8 IT - Computer & Licensing 9 Office Expenses & Supplies 10 Travel & Training 11 Professional Services 12 Contract Services (excluding Transit) 13 Contract Services -Transit 14 Minor Capital Expense 1 5 Consulting Services 16 ' Regular Repair_& Maintenance 1 7 Debt Interest 18 Transfers to Other Gov't & Agencies 2014 Weight /o 9.26 /o 1.65 /o 2.19 /o 0.32 /o 0.33 /o 1.03 /o 0.93 /o 4.21 /o 0.80 /o 0.37 /o /o 6.21 /o 0.63 /o /o 1.32 /o 2.62 /o 3.33 /o /o Some of the major categories, with higher weights, are salaries and benefits (56.60%), and contract services (15.72%). After assigning the weight, the next step was to assign a proper inflation factor to each category mentioned above. In order to assign an inflation factor, the City of Abbotsford used both internal and external sources. Page 9 of 11
10 Reporl No. COR Page 3 of 4 CPI isn't entirely abandoned; it is used as a proxy for some of the categories such as office supplies, travel, and training. For some expenditure categories, inflation is determined by a contractual obligation to increase spending, for example electricity (BC Hydro) and some contract services (BC Transit); therefore, the inflation rate is used as per these contracts. The following table shows the inflation factor and source for each category: No. Category 1 Salaries & Wages 2 Benefits 3 Insurance 4 Electricity 5 Natural gas I Propane 6 Other Utilities (Water/Sewer) 7 Fuel & Oil 8 IT - Computer & Licensing 9 Office Expenses & Supplies 10 Travel & Training 11 Professional Services 12 Contract Services (excluding Transit) 13 Contract Services- Transit 14 Minor Capital Expense 15 Consulting Services 16 Regular Repair & Maintenance 17 Debt Interest 18 Transfers to Other Gov't & Agencies Inflation Factors Wage & salary settlements, internal & external sources Wage & salary settlements, internal & external sources City of Abbotsford BC Hydro Conference Board of Canada Conference Board of Canada BC Transit contract Conference Board of Canada City of Abbotsford Using the inflation factors and sources mentioned above, percentage changes from year to year are established. The MPI is estimated to be at 2.57% in The table below displays the forecast of MPI and CPI for Comparison of Municipal and Consumer Inflation Rates Average to 2020 MPI CPI- BC Forecast (annual average) Difference 2.57% 2.56% 2.33% 2.28% 2.21% 2.39% 2.18% 2.02% 2.04% 2.06% 2.06% 2.07% 0.39% 0.55% 0.29% 0.22% 0.14% 0.32% Comparison between the MPI and CPI: QQ 0 A, I - MPI - CPI - BC Forecast (annual average) 0.50 /o Page 10 of 11
11 Report No. COR ~Pag e _4 of 4 In 2016, the MPI is higher than the CPI by 0.39%. From , the expected average variance between the MPI and the CPI is only approximately 0.32%. The MPI is adjusted each year according to the market trends. FINANCIAL PLAN IMPLICATION Staff is recommending a Financial Mandate which is based on a Municipal Price Index (MPI) instead of Consumer Price Index (CPI) to guide the tax increases for the Financial Plan. Adopting a financial mandate that includes a component of inflation provides a financial framework that supports the rolling multi year financial plan and budget. Reviewed and approved by the: Chief Financial Officer IMPACTS ON COUNCIL POLICIES, STRATEGIC PLAN AND/OR COUNCIL DIRECTION The material provided within this document aligns and is consistent with Council's strategic vision of fiscal discipline, organizational alignment and vibrant community. SUBSTANTIATION OF RECOMMENDATION The City of Abbotsford cost of municipal service provision faces inflationary increases. Due to price increases, a larger amount of expenditures are required in the City's budget to purchase the same mix of goods and services overtime. However, because the City purchases a considerably different range of goods and services than the average Canadian consumer, the CPI (consumer price index) is not an adequate measure of the inflation experienced in the City operating budget. Moreover, municipal costs tend to experience a higher level of inflation than the average consumer costs do. Thus, a Municipal Price Index (MPI) was developed to measure the price inflation the City's operating budget faces. The recommendations described above provides for a framework that streamlines and integrates the planning and budget cycle. Other benefits would be greater transparency to our tax payers as to tax rates over a four year process. Additionally there is a better alignment of the budget approval process with the fouryear term of Council. Lisa Pleadwell Director of Finance/Chief Financial Officer Page 11 of 11
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